Guidelines for the private sector
As well as assisting the countries of origin affected by corruption, businesses have a role and responsibilities to both report and to act when there is a suspicion that they are dealing with people subject to sanctions.
All nationals and legal entities established under the law of a respective jurisdiction imposing sanctions must comply with the sanctions that are in force, irrespective of where their activities take place. Failure to comply with sanctions might result in a criminal prosecution or a monetary penalty.
Banks and financial institutions, as well as real estate agents and retailers in the luxury goods sector, are all particularly at risk of dealing with persons subject to sanctions. Undertaking due diligence obligations and ensuring your company does not deal with someone subject to sanctions is therefore key.
There is a number of processes that your company or institution can adopt in order to minimize the risk of non-compliance with sanctions. Depending on your business model and risk factors, these may include:
- Establishing and updating a sanctions policy
- Implementing a monitoring system to ensure continual compliance with sanctions
- Raising awareness of sanctions-compliance amongst your staff and within your supply chain
- Identifying and establishing a communication channel with your national competent authority
As soon as practicable, most sanctions regulations require natural and legal persons, entities and bodies to provide their national competent authorities with information that would facilitate compliance with the regulations. In case you might be dealing with a designated individual or an entity, or you are unsure of your reporting obligations, you should seek independent legal advice or contact the relevant national competent authority from the list below.
Contacts of National Competent Authorities
- Unifying Framework of five core practices for professionals to reinforce existing corporate practices, helping industries identify and respond to clients or transactions intent on furthering illicit activity.
- A firm’s guide to preventing financial crime.